New Research Paper: The Resurgence of Cultural Borders during the Financial Crisis: The Changing Geography of Eurozone Cross-Border Depositing

This paper, jointly written with Stefanie Kleimeier and Sylvia Heuchemer, has just been published by the Journal of Financial Stability 24(2016) and can be dowloaded here (free access until June 23, 2016).

The paper investigates the impact of cultural borders on the geography of international finance during stable and crises times. It shows that cultural distance limits international financial integration over and above what can be expected from economic trade and transaction costs. While it provides evidence that cultural borders lost influence during a “Europhoria” phase after the introduction of Euro notes in 2002, it also indicates that cultural borders resurge during the 2007/08 financial crisis and severely limit financial integration.


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